The Senate approved President Biden’s $ 1.9 trillion coronavirus relief package on Saturday, targeting a third round of stimulus checks for most Americans. This is raising doubts about when checks can reach bank accounts, especially for those who are dealing with lost jobs or income.
The bill will return to the House early next week for final approval, as the Senate and House versions of the relief bill have some differences, and will then be sent to Biden for signature. After the bill is sanctioned, the IRS can begin delivering checks within a few days to a week, based on the deadline for the previous round of checks – potentially as early as the weekend of March 13.
“Next weekend, a couple who earn less than $ 160,000 may very well have $ 2,800 deposited in their checking account,” said Chris Krueger of Cowen & Co. in an analyst’s note before the Senate passed the bill. project, which he hoped would take place this weekend.
Approval of the spending bill was announced by anti-poverty and unemployment experts, who said the checks for $ 1,400, as well as other provisions – such as an extension of extra $ 300 a week unemployment benefits and an expansion of Credit Child Tax – will help families pay their bills and lift children out of poverty. Almost half of Americans are still experiencing financial problems a year after the pandemic closed the economy and caused massive layoffs, according to new research from the Pew Research Center.
“Working families will receive $ 1,400 per individual from a third stimulus check, in addition to benefiting from a $ 3,000 muscular child tax credit per child,” noted Andrew Stettner, a Century Foundation unemployment specialist, in a statement sent by email on Saturday. “This is real aid that can help to reverse the unprecedented economic inequalities exposed and exacerbated by the pandemic.”
He added: “The federal response to COVID-19 has already avoided the poverty of millions of Americans, and this package is ready to continue this critical work.”
Applause and cheers
Approval of the bill in the Senate on Saturday was met with applause and applause from the Democrats, who voted in favor. As Republican Senator Dan Sullivan left due to a family emergency on Friday, Vice President Kamala Harris did not have to visit the Capitol to break ties.
However, fewer Americans can receive checks in the third round of stimulus payments due to a change in the version of the Senate bill. Biden and moderate Democratic senators struck a deal that limits the number of families that qualify for $ 1,400 checks. The revised limits would make millions of Americans ineligible for payment.
The Senate bill directs direct payments of $ 1,400 to individuals who earn up to $ 75,000, but cuts eligibility for singles who earn more than $ 80,000. For couples filing a joint federal income tax return, phasing out begins with those earning $ 150,000 and ends at $ 160,000.
“I wanted to keep the income cap at previous levels” – $ 75,000 for singles and $ 150,000 for couples – Senator Ron Wyden of Oregon said on Wednesday in a call to reporters ahead of the vote. “And we were successful on that front.”
He added: “I would have preferred what we had before, but I don’t want to distract people from the basic achievement” of maintaining the $ 75,000 and $ 150,000 income limits.
Ticket before March 14?
Democrats want the bill to be passed before March 14, when the current $ 300 extra in weekly unemployment benefits will expire. The Senate bill extends the $ 300 increase through September, in contrast to the House bill that would increase the increase to $ 400 a week through August.
In addition to the $ 1,400 checks, the project would provide financing for small businesses, schools, cities and states; offering tax incentives to families with children; and increase government spending on COVID-19 testing and contact tracking.
IRS Schedule
If the bill is signed on March 12, the Friday prior to the expiration of the extra unemployment benefit, stimulus checks can begin to reach bank accounts from a few days to a week after that, based on the term of the loan. IRS to distribute the second round of stimulus checks in December.
Earlier this month, the IRS said it is looking at the relief bill to prepare to distribute the next round of payments. “We are keeping our eyes on the hill,” said Ken Corbin, the IRS taxpayer’s chief experience executive, although he did not predict when the tax agency could distribute the checks.
The IRS depends on the taxpayer’s most recent income tax return to determine how much they should receive and when they can receive it. That’s why some tax experts are urging taxpayers to file your returns as soon as possible, especially if they have had a major life change, such as the birth of a child or the loss of a job or income in the past year.
As the IRS officially began accepting tax returns on February 12 and will close the filing window on its usual April 15 date, the bill can be signed into law during the middle of the tax filing season.
If a taxpayer fails to submit its 2020 tax returns before the project is sanctioned, the agency will likely rely on its 2019 tax return to calculate the payment of the stimulus check – and this 2019 return may not reflect income losses during last year’s economic crisis or a new child, for example. In this case, the taxpayer may not receive as much stimulus money as he is entitled to.
Income limits
A person’s income is the main determinant of whether they will receive a check, as well as the amount of the payment.
Payments would total $ 1,400 for a single person or $ 2,800 for a couple filing jointly. Only individuals earning up to $ 75,000 will receive full payments, as will couples with incomes up to $ 150,000. Payments would decrease for rents above these limits.
The Senate bill cuts singles with incomes in excess of $ 80,000 and couples who earn more than $ 160,000. Under the first stimulus check, the cuts were higher, at $ 100,000 for individuals and $ 200,000 for couples.
Some lawmakers argued that checks should be directed to low-income families, citing research that shows that high-income families are recovering from the economic impact of the pandemic. But other surveys signal widespread financial problems across the country, with the ranks of adults struggling financially last month, little changed from December, according to Morning Consult economist John Leer.
A third round of $ 1,400 checks would allow nearly 23 million adults to pay their expenses for more than four months without incurring further debt or consuming their savings, his analysis found.
“This third stimulus check is absolutely vital,” Colleen McCreary, Credit Karma’s personal director, told CBS MoneyWatch. “I don’t see a world in which people have a solid financial position without some additional stimulus money.”